Clinton Absorbs $13 Million in Campaign Debt

New York Sen. Hillary Clinton wrote off more than $13 million in debt from a personal loan she lent her unsuccessful presidential campaign, according to recent documents filed with the Federal Election Commission. Clinton is poised to become secretary of state in President-elect Barack Obama’s administration.

It was little more than a formality since campaign finance laws do not allow a candidate to repay personal loan debt after the election in which it was incurred. Bloomberg reports that Clinton’s loan is not tax-deductible because the money she lent herself is now considered a campaign contribution.

The New York senator still has considerable debts to pay off—nearly $6.4 million to vendors. The bulk of that debt, $5.4 million, is owed to Penn, Schoen & Berland, the political consulting firm of her former chief strategist Mark Penn, according to the FEC documents.

It doesn’t look like Penn’s firm will be getting a huge payment anytime soon–as of Nov. 30, Clinton had just $188,000 in cash on hand remaining in her campaign account.

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